Regarding the Compensation

Introduction

What is the broadcasting compensation (Hereinafter as Compensation)

The article 82 of the Korean copyright act stipulates that if a broadcasting organization makes a broadcast using commercial phonograms, it shall pay reasonable compensation to the corresponding phonogram producer. The broadcasting compensation system was enacted upon the amendment of the copyright act in 1987, and the previous recording industry association of Korea was in charge of the collection and distribution of the compensation till 2001 and from 2002, the RIAK continues to be in charge of them. In case of a copyright holder, he/she can exercise the exclusive right on the basis of the public transmission right, but a neighboring copyright holder can only exercise a right to claim the compensation, but not to prevent the use of the corresponding phonogram.

Broadcasting Compensation Collection Procedure

What is the digital voice transmission compensation?

Digital voice transmission refers to the bi-directional transmission which can be sent simultaneously to the public service means including the internet and TV.

The article 83 of the copyright (compensation by digital sound transmission organizations to producers of phonograms) clearly stipulates that a digital sound transmission organization shall pay reasonable compensation of the corresponding phonogram if the organization transmits by using the phonogram. The system was enacted upon the amendment of the copyright act in 2007, and the recording industry association of Korea has been in charge of the collection and distribution of the compensation from 2009. In case of a copyright holder, he/she can exercise the exclusive right on the basis of the public transmission right, but a neighboring copyright holder can only exercise a right to claim the compensation, but not to prevent the use of the corresponding phonogram.

Digital music transmission compensation process

What is the performance compensation?

Performance compensation is the compensation to be paid by users when the users in a confined area play the copyrighted music to audiences (performance).

The article 83 of the copyright stipulates that a party doing a public performance using a commercial phonogram shall pay reasonable compensation to the corresponding phonogram producer.

The system was enacted upon the amendment of the copyright act in 2009 and the Association has been in charge of the collection and distribution of the compensation since 2009. In case of a copyright holder, he/she can exercise the exclusive right on the basis of the public transmission right, but a neighboring copyright holder can only exercise a right to claim the compensation, but not to prevent the use of the corresponding phonogram.

Performance compensation collection procedure

Eligible Parties for Compensation

Compensation shall be paid to the corresponding phonogram producer as stipulated in the copyright act and it includes its successors who have received the corresponding right.
However, parties which have produced a compilation album after obtaining permission to use the copyrighted phonogram or in charge of only distribution, are not subject to the compensation.

Compensation Calculation Standard

Compensation shall be calculated in accordance with the relevant provisions, with the amount collected from the operation for the quarter (or semester or year) dividing by the number of monitoring and then, multiplying by the number of transmission. Thus, it could be varied by the payment period.

Broadcasting compensation distribution procedure

The Association strives to distribute the compensation collected from the broadcasting companies to the rightful copyright holders in a transparent and fair manner.

Collection of the broadcasting data and distribution of the compensation

- For collection of the compensation, direct collection of the broadcasting logs of about 140 broadcasting channels with the phonogram DNA extraction technology.
Direct matching with the broadcasting log with the DB through the computer system (Finalization of a rightful copyright holder –notification of detailed statement)

Distribution Period

The Association strives to distribute the compensation collected from the digital transmission companies and performance companies to the rightful copyright holders in a transparent and fair manner.

Collection of the usage data and distribution of the compensation

- For collection of the compensation, direct collection of the usage logs directly from the obligators for compensation.
Direct matching with the broadcasting log with the DB through the computer system (Finalization of a rightful copyright holder –notification of detailed statement)